Refund of excess tax cannot be withheld for pending later-year assessments; delayed refund also carries statutory interest.

Excess tax already determined as refundable could not be withheld merely because assessments for later years were still pending, as the Act does not permit retention of a refund in anticipation of a possible future liability. The court also recognised that delayed repayment attracts interest under section 24(4) of the Tamil Nadu General Sales Tax Act, 1959. The respondent was directed to release the excess tax refund if no later assessment order imposing liability had been passed, and to pay interest on the belated refund.

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Issues: Whether excess tax already determined could be withheld pending finalisation of assessments for later assessment years, and whether interest was payable on delayed refund.

Analysis: The petitioner had already been found entitled to refund of excess tax for the earlier assessment year, while the department sought to postpone payment only because assessments for later years were still pending. The Court held that the Act does not authorise retention of excess tax merely in anticipation of a possible future liability. It further noted that section 24(4) of the Tamil Nadu General Sales Tax Act, 1959 provides for interest on belated refund, showing that delayed repayment is not permissible without consequence.

Conclusion: The respondent was directed to refund the excess tax if no assessment order had been passed for the later years imposing liability, and to award interest under section 24(4) of the Tamil Nadu General Sales Tax Act, 1959.

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